12A and 80G Registration (F)

The various benefits of Section 12A registration are enumerated as below:

1) The income applied for charitable or religious purpose will be considered as application of income i.e. expenditure incurred for charitable or religious purpose will be allowed while computing income of the trust.

2) The benefit of accumulating or setting aside of income not exceeding 15% for charitable or religious purpose will be available.

3) The accumulation of income, which is deemed as application of income as per section 11(2), shall not be included in the total income.

4) NGO’s receives various grants from government and other agencies. They are eligible to get grants and financial funding from various agencies. These agencies generally make grants to 12A registered NGO’s.

5) Benefit in Section 80G registration. NGO’s have to apply separately for Section 80G registration.

6) Benefit in FCRA registration. NGO’s seeking foreign contributions have to obtain FCRA registration from the Ministry of Home Affairs.

7) Finance Act’2014 has extended the benefits of registration for prior years as well. These benefits have been extended to the trusts or institutions where the registration has been granted under section 12AA.

8) Registration under section 12A is one-time registration. Once the registration is granted to the trust, it will be hold good till the cancellation of registration. There is no provision which requires any renewal of registration. Thus, the benefits of registration can be claimed for lifetime by NGO.

1. The new process of registration will impose higher administrative burden on tax authorities.
2. This new process of registration will become more cumbersome and costlier to the NGOs.
3. Additional burden on NGOs in case of delayed filing of returns.
4. NGOs dependent on overseas funds are exposed to higher risks.
5. Greater control and leverage on Government authorities to monitor and control the activities of NGOs.

80G Registration procedure consists of following steps:

1. The application for 80G certificate needs to be submitted to the Commissioner of Income Tax (Exemption) in the jurisdictional area of the institution.
2. Once the form and the required documents for 80G registration are submitted, an on-the-premise inspection is done by the Income Tax department.
3. The officials might ask for additional documents and evidence that are required to be made available by the institution.
4. On satisfactory verification and scrutinizing of documents and the office of the NGO, the 80G certificate is awarded to the institution by the Commissioner.

• Form 10G.
• Registration certificate and MoA in case of Section 8 companies and Societies; Trust Deed in case of a Trust.
• No objection certificate from the owner of the property where the registered office of the Institution is located.
• PAN card copy of the NGO.
• Copy of Utility Bills – Electricity bills, water bills or House Tax Receipt.
• Donor list along with their complete address and PAN.
• Book of Accounts & Income Tax Return documents, of last three years.
• List of welfare activities being carried out & the progress report for last three years.
• Detailed list of the board of trustees.
• Deed for Verification – Original RC, MoA or Trust Deed.